
The federal government has promised to pay the outstanding pension dues as it has released only about 25 per cent of the total amount budgeted for 2024.
The Minister of Finance and Coordinating Minister of Economy, Wale Edun, made the commitment on Tuesday when retirees from the Nigeria Contributory Pension Scheme protested at the Federal Ministry of Finance in Abuja.
Addressing the crowd, Edun disclosed that N22bn of the N88 billion budgeted for pension arrears in 2024 had already been disbursed.
Angered by the delay in payment of pension dues, retirees blocked the main gate of the ministry's secretariat, demanding to meet the minister.
He assured the retirees that the remaining amount would be paid by the end of the year, with distribution starting from next week.
“What has happened is that there is a backlog in terms of contributions, there is a backlog under the old system and there is a solution.
“There is a committee under the service chief, which has met the budget minister, and we have a plan to deal with the backlog under the contributory pension scheme.
“Also, under the current budget (2024), there is about N88bn of which N22bn has been paid. And that balance amount, we are committed to paying it. It will have to be paid this year. We are committed to doing so from next week,” he said.
For a permanent solution, Edun revealed that FG is considering raising funds through capital markets to clear the backlog.
“In long-term terms, this is a huge amount, and we have to create a solution that takes care of everyone. Work is being done on that. It will be a question of going to the capital markets and raising an instrument that will allow that backlog to be cleared once and for all.
“In the immediate term, payments will be made under the existing budget and we are working, and we will present a viable solution to Mr. President using the financial market to take care of the huge backlog under the contributory pension scheme.
“Your funding will be paid under the budget. We will start next week and pay whatever we can under the current budget approved by the National Assembly, Edun said.
The minister's assurance comes as retirees across the country are expressing concern over delayed payments and demanding quick action to ease their financial difficulties.
Earlier in his address, the National Chairman of the Nigeria Union of Pensioners Contributory Pension Scheme Sector, Sylva Nuatavu, called for consequential adjustment in pensions arising out of the implementation of the National Minimum Wage (Amendment) Act, 2024.
Nuatavu said the union wrote several letters to the ministry without any response, a development that prompted members to gather at the entrance of the ministry.
NUPCPS Chairman urges FG to pay N32,000 pension increase to pensioners, saying Nigerian workers who retired from the Contributory Pension Scheme 20 months ago (March 2023 to date) are yet to be paid their retirement benefits. Has not been done.
“CPS retirees were excluded from three pension increases paid or approved by the current administration to retired public servants.
“Moreover, it took more than 20 months to release funds for the earned rights of retired workers. However, following a peaceful rally by the union at the office of the Accountant General of the Federation on 23 October, the three months' accrued rights were released.
“We still have 18 months of backlog yet to be released and this is a cause for worry and concern for us as retirees under the CPS,” Nwaivu said.
He said retirees under the CPS have become an endangered species in the country, starving to death, inhumane and facing untold hardships.
PUNCH had earlier reported that pension arrears owed to the federal and state governments have risen to over N193bn.
Although many states like Zamfara, Benue, Kaduna, Kano, Nasarawa and others are clearing the backlog, it was revealed that the FG is still yet to pay over N88bn in contributory pensions, while many states are paying more pensions than estimated Were burdened with backlog. N105bn.
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